Should You Buy, Hold, or Sell NVIDIA Stock Before Feb. 26?

DeepSeek’s menace resulted in a sharp drop in NVIDIA Corporation’s NVDA stock last month. Although most of the losses have since recovered, the stock is now awaiting the fiscal 2025 fourth-quarter and full-year results announcement on Feb. 26, after market close. Is it judicious to buy NVIDIA stock before the earnings report, or is it wiser to wait and observe? Let’s see – NVIDIA Stock – Positive Earnings ExpectationIn the reporting quarter, NVIDIA launched its most awaited cutting-edge Blackwell architecture. CEO Jensen Huang has already said that the demand for the Blackwell chips has been insane due to their greater efficiency, faster artificial intelligence (AI) interface, and more security. The likes of Microsoft Corporation MSFT and Alphabet Inc. GOOGL have ordered Blackwell chips, while the older Hopper chips are still in demand for their superior quality compared to rival Intel Corporation INTC. So, it’s evident that customers have lined up for the current and next-generation chips, leading the company to surpass its revenue projections for the fiscal fourth quarter and full year. Likewise, NVIDIA’s strong average four-quarter earnings surprise of 9.8% implies potential earnings growth in the upcoming release, likely boosting its stock value.Image Source: Zacks Investment ResearchNVIDIA Stock – Promising FutureDeepSeek’s threat is overstated and should not have a long-term impact on NVIDIA stock. DeepSeek launched a cost-effective large language model that can disrupt the AI landscape. After all, NVIDIA’s graphic processing units (GPUs) needed for AI infrastructure buildout are way more expensive.However, lower expenses will eventually drive more use of computing power and benefit NVIDIA stock. The tech giant, anyhow, has the resources to introduce more cost-friendly products and enrich the AI ecosystem (read more: Buy NVIDIA Stock, DeepSeek's Threat is Exaggerated).NVIDIA’s dominant position in the GPU market has already given the company a competitive advantage. Lest we forget, NVIDIA’s CUDA software platform is more popular among developers than Advanced Micro Devices, Inc.’s (AMD) ROCm software platform. The change is improbable due to the cumbersome infrastructure transitions. Thus, NVIDIA’s strong moat bolsters its stock outlook (read more: Which Is the Superior AI Investment Now: NVIDIA or AMD?).Buy More NVDA Shares NowNVIDIA’s shares are expected to rise steadily due to strong earnings from high Blackwell chip demand, declining DeepSeek worries and GPU dominance, making NVDA stock a compelling buy now. Additionally, NVIDIA’s 12.8% debt-to-equity ratio is lower than the Semiconductor - General industry’s average of 20.1%, which reduces investment risk.Image Source: Zacks Investment ResearchTo top it off, NVIDIA stock remains reasonably priced. This is because, per the price/earnings ratio, NVDA trades at 30.9X forward earnings. In comparison, the industry’s forward earnings multiple is 36.06.Image Source: Zacks Investment ResearchHence, NVIDIA rightfully has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks